NEW DELHI: India and Australia are aiming to reach an early harvest announcement by December 2021 to further enhance trade ties between the two countries, according to a joint statement released on Friday, August 27, 2021.
This was agreed upon in a meeting held between Commerce and Industry Minister Piyush Goyal and his Australian counterpart Dan Tehan MP on Thursday.
The two ministers have directed their officials to speed up the negotiations.
They discussed the way forward for an early conclusion of a bilateral Comprehensive Economic Cooperation Agreement (CECA).
"In this regard, the ministers directed officials to speed up the negotiations and to meet as often as required to achieve an early harvest announcement by December 2021 on an interim agreement to liberalise and deepen bilateral trade in goods and services, and pave the way for a comprehensive agreement," the statement said.
They also decided to start consultations on the potential opportunities and impacts of an interim agreement as a pathway to a full CECA.
"The ministers look forward to a balanced trade agreement that encourages expanded trade and investment flows to the benefit of both of our economies and people, and that reflects their shared commitment to the rules-based international trading system," it added.
The bilateral trade between the countries stood at USD 12.3 billion in 2020-21 as compared to USD 12.64 billion in 2019-20.
Under an early harvest pact, two trading partners reduce or eliminate customs duties on a limited number of goods traded between them, while in a CECA the reduction and elimination happen on a maximum number of items.